Mortgage With Disability Income
Long-term disability, Social Security disability, and VA disability benefits can count toward a home loan. On FHA, lenders document the income, not your condition.
What you need to qualify
Each item below is a requirement of Fannie Mae, FHA, or at least one other program we offer.
- An award letter or benefits statement from the payer, such as the Social Security Administration, the VA, or an insurer.
- On FHA, income not set to expire within three years of your application.
- On FHA, your last Notice of Award letter plus your tax returns, a recent bank statement, a benefits letter, or your SSA-1099.
- On a Fannie Mae long-term disability policy, a copy of the policy or a benefits statement from the payer.
- No minimum history for long-term disability on a Fannie Mae loan.
- No details about your condition. FHA does not allow the lender to ask.
Several sources count
No minimum history
Reevaluations are fine
No expiration date is fine
No health questions on FHA
VA disability counts
Can Disability Income Qualify For A Mortgage
Yes. On FHA, benefits from the Social Security Administration, the VA, other public agencies, or private insurance can count.
FHA counts disability benefits received from the Social Security Administration, the Department of Veterans Affairs, other public agencies, or a private disability insurance provider. If the award letter has no defined expiration date, the income can be considered likely to continue.
Income that is due to expire within three years of your application cannot be used on FHA, and the lender may not rely on a pending or current reevaluation of medical eligibility. For how tax-free benefits can be grossed up, see our non-taxable income gross-up page.
On a Fannie Mae loan, long-term disability needs no minimum history, and a reevaluation of those benefits is not treated as a sign the income will stop. Social Security disability can be documented with an SSA award letter, and VA benefits with an award letter or benefit statement.
Why choose Saxton for a mortgage with disability income
For borrowers whose income comes from disability benefits and who want it counted the right way.
Several Sources Count
FHA counts disability benefits from the Social Security Administration, the VA, other public agencies, or a private disability insurance provider.
No Minimum History
On a Fannie Mae loan, long-term disability income has no minimum history requirement.
Reevaluations Are Fine
On a Fannie Mae loan, a reevaluation of long-term disability benefits is not treated as a reason the income will stop, and FHA may not rely on a pending medical reevaluation.
No Expiration Date Is Fine
On FHA, if your award letter has no defined expiration date, the income can be considered likely to continue. Income set to expire within three years cannot be used.
No Questions About Your Health
On FHA, the lender may not ask about or request documents on the nature of your disability or medical condition.
VA Disability Counts
At least one jumbo program accepts VA disability compensation documented by the VA, and at least one VA program treats Social Security disability with no defined expiration as likely to continue.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using disability income for a home loan.
Yes. On FHA, the lender gets your last Notice of Award letter plus your tax returns, a recent bank statement, a benefits letter, or your SSA-1099. On a Fannie Mae loan, an SSA award letter can document the income.
Not on FHA. The lender may not ask about or request documents on the nature of your disability or your medical condition.
On a Fannie Mae loan, a reevaluation of long-term disability benefits is not treated as a reason the income will stop. That rule does not cover Social Security disability. On FHA, the lender may not rely on a pending or current reevaluation.
No. On FHA, if the award letter has no defined expiration date, the income can be considered likely to continue.
On a Fannie Mae loan, if short-term payments will drop because they convert to long-term benefits, the long-term amount is used to qualify.
Yes. FHA counts VA benefits documented with your latest benefits letter and your tax returns or a recent bank statement, and at least one jumbo program accepts VA disability compensation.
On FHA, certain types of disability payments are listed as non-taxable income, which can be grossed up. Our non-taxable income gross-up page explains how.
Find out what you qualify for
Tell us where your benefits come from and what you want to buy, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.